OGDENSBURG — For the second year in a row, city officials are hoping a solar power venture will obtain a New York State Energy Research and Development Authority grant to help build a large photovoltaic system on outer Champlain Street.
The city plan calls for building a six-acre array on property the city owns near the municipal landfill.
Representatives from RER Energy Group, Reading, Pa., and New Energy Equity LLC, Annapolis, Md., told the Ogdensburg City Council on Monday that they will submit a NYSERDA grant application on Thursday seeking a portion of some $60 million in state funding to help fund construction of a photovoltaic system that could generate as much as 1.1 megawatts of electricity and save the city as much as $2 million over the 25-year life of the agreement.
The city of Ogdensburg uses about 3 megawatts of power annually to run the city government, and the solar array would generate about a third of the city’s annual needs, according to officials.
Ian C. Palmer, Chief Executive Officer of New Energy Equity, said there is no risk to the city because his company, with the help of a state energy grant and tax incentives, would pay for all construction and operating costs for 25 years.
He said if NYSERDA helps the private company construct the system, the financial incentives will be passed onto the municipality in the form of cheaper rates. He said the final rate structure would be determined after factoring in incentives and the going rate for a kilowatt hour.
Mr. Palmer said his company serves as the financial backbone of the plan, while RER Energy Group would provide on-site construction and the technical know-how to make the system work.
Mr. Palmer told the council that private companies like his are needed to take advantage of the NYSERDA grant program because many of the renewable-energy incentives offered come in the form of tax breaks.
“The way we come into this project is that we can pay for the project and take advantage of those incentives and then indirectly pass those incentives onto you in the form of lower energy rates,” Mr. Palmer said. “We do these project all over the country and have quite a bit of experience.”
If his company is successful in securing a state grant and incentive package for the city’s proposed system, city taxpayers would not pay any up-front costs for the project.
“We are the ones paying for the installation, paying for the equipment and so on,” Mr. Palmer said. “There’s no out-of-pocket expense for Ogdensburg at all. There’s no up-front expense, there’s no maintenance expense. If something goes wrong, we carry the insurance; if something breaks, we have the warranty. If something is not on warranty, we pay.”
The city’s role in the project is to enter into a 25-year agreement to buy the energy produced at a set price. At the end of the 25 years, he said, the city can enter into a new lease agreement, have the array torn down and removed at no cost or assume ownership of the facility at a “fair market” price.
The two companies offering their presentation to City Council on Monday said they will apply for the latest round of NYSERDA funding and expect to hear sometime in September whether the application was successful.
Following the presentation, council members held an executive session with the two companies to talk about a potential rate structure and terms for leasing the city land. The council took no action following the session.
In other action at Monday’s meeting, the council heard a presentation from Ogdensburg Bridge and Port Authority Chairman Samuel J. LaMacchia regarding plans to expand the runway at the Ogdensburg International Airport by approximately 1,200 feet to accommodate larger commercial aircraft. The current runway is 5,200 feet.
The OBPA is working with Allegiant Air to offer flights from Ogdensburg under a contract approved in June. The expansion could increase traffic by up to 40,000 passengers a year with larger jets seating as many as 150 passengers, according to Mr. LaMacchia.
Mr. LaMacchia said the proposed expansion continues on the fast track pending Federal Aviation Administration approval, and that Alllegiant Air is still hoping for a November 2016 startup date.
“We’ve compacted a seven or eight year plan into three-and-a half-years,” he said.